The best way to understand the business landscape in any industry is simple: Ask. And that is exactly what the WTW Rewards Data Intelligence team did with leaders in our fintech industry club. To learn about the current talent and rewards trends within the sector, we conducted a Q2 pulse survey, and these were the total rewards developments leaders were ready to share. Here’s what we learned.
More than half (53%) of respondents said their salary budgets are higher this year than in 2022 due to continuous inflation and strong labor market competition. Additionally, 53% also reported that they do not expect any delays in the effective date of their 2023 salary increases and all will be implemented as planned (Figure 1).
As with so many other industries, fintech organizations are having difficulty finding qualified candidates for open positions in both tech and non-tech job families (Figure 2).
Respondents expected that finding qualified talent would be easier given the recent layoffs in the tech industry in late 2022 and early 2023; however, the demand for staff with tech skills across the labor market has remained strong. Fintech leaders are not alone in their search for in-demand skills.
As indicated in the second pie chart in Figure 2, the extent of difficulty in hiring for non-tech jobs challenged 21% of respondents and somewhat challenged half of the survey participants. However, 29% said it was not an issue to fill open non-tech roles.
As digital consumerism becomes more prevalent, the fintech sector needs to strengthen its strategy to attract and retain qualified talent to adapt to marketplace changes. A compensation strategy based on the market value of digital skills can help organizations drive talent attraction and retention while ensuring that the workforce is equipped with the right skills to move the business forward.
The EU pay transparency directive as well as North American pay transparency provisions are bringing pay transparency into the spotlight for all industries. Yet only one in five (21%) of fintech organizations have acted on pay transparency, and half (50%) are not yet taking any measures and are still considering their options (Figure 3).
More than half (57%) of respondents said they have no plans to change their health and benefits budgets in 2023, while 54% said they do plan to modify their programs (Figure 4).
These responses indicate that fintech employers want to be more efficient with their current health and benefits program spending. To accomplish this, organizations will need information on current benefits practices in the industry to benchmark and make decisions on which programs will meet workforce needs without breaking the bank.
When it comes to their 2023 total rewards strategy, most fintech organizations (57%) appear to be prioritizing transparency and increased flexibility for their workforce. These measures allow employers to improve employee welfare while also making the company more attractive to new talent (Figure 5).
Fintech organizations can effectively provide their workforce with transparency and flexibility by understanding these priorities from their employees’ perspective. This puts employers on the same page as employees and supports efforts to roll out transparency and flexibility initiatives that correspond to workforce needs while maximizing their total rewards strategy.
Broad economic, labor and regulatory changes are affecting how fintech organizations are making pay decisions. While these events can be difficult to predict, industry organizations can prepare by having comprehensive market data that allows them to align their rewards and talent strategies with industry benchmarks. Market data also supports a modern approach to employment and benefits practices that drive talent attraction and retention. Through these efforts, fintech organizations will maximize their compensation spend, establish a workforce for a rapidly changing market and prepare their business for significant changes in the future.